Just Deserts

Poverty and income inequality: can workplace democracy make a difference?

Executive Summary

Workplace democracy and the structure of the UKâ€™s labour market

Profound structural weaknesses in the UK labour market have led to rising income inequality, the growth of in-work poverty and stagnant wages

Living standards for those with incomes below the median have been squeezed since 2004. A major reason for this is low wage growth. Rising in-work poverty is responsible for increases in the payment of tax credits and in-work benefits to low-paid workers.

Living standards for those with incomes below the median have been squeezed since 2004. A major reason for this is low wage growth. Rising in-work poverty is responsible for increases in the payment of tax credits and in-work benefits to low-paid workers.

The evidence presented in this report demonstrates the relationship between workplace democracy and incomes. It shows how the erosion of institutions in the labour market that seek to achieve a fairer initial distribution of incomes (instruments of â€śpre-distributionâ€ť) have contributed to the rising tide of low pay, in-work poverty and income inequality

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